Spencer Bogart, who is a partner at venture capital company Blockchain Capital, in an interview with CNBC said that bitcoin has all the chances to soar in 2018, reaching the price of more than $50,000 per unit.
Retail vs. Institutional Investors
According to Bogart’s words, there are two main rationales behind bitcoin’s potential:
- the increasing interest from retail investors
- the growing enthusiasm of institutional investors
Being Blockchain Capital partner, the San-Francisco-based firm which was first to accept capital calls on bitcoin, Bogart is sure that both retail and institutional investors will carry bitcoin up. He argues that there’s only space to move up for the institutional parties. In his opinion, this kind of ownership is barely efficient, so it needs development.
"The drawbridges for institutional pools of capital have just been lowered,” Bogart said.
He believes that bitcoin is still exotic and novel for the institutional side. However, these investors will be soon driven by the mainstream.
"If institutional players want to play in this market, they'll dip their toe in the water or wait on the sidelines to see if the products themselves function," Bogart added.
BC’s partner is sure that with time bitcoin market will evolve into a large one.
Millennials Steal the Show
But when it comes to the retail side, the stage is going to be taken by youngsters, the representatives of the generation Y, which known as millennials.
"When I think about what are likely good indicators of future technology trends, I pick younger demographics over older demographics every time," he said.
He also referred to the Harris Poll, which was recently conducted for Blockchain Capital. It discovered that more than 30% of the US millennials have plans to pile into bitcoin within the following five years, whereas only 19% of American adults would do the same.
Bitcoin or Blockchain?
Bogart not only believes that bitcoin will reach $50,000 skies but that blockchain market and cryptocurrency business, on the whole, will show strong potential in 2018. He thinks that both of them will rise in value, that’s why currently he is piling into both.
Mainly, such a decision of his is based on the belief that investing in both bitcoin and blockchain is more beneficial in the long-term perspective.
Does Bogart Have a Point?
Whether Bogart is right or wrong, we will learn about it only with time. However, it is essential to admit that currently bitcoin has been set on a path to recovery. Today, on January 5 the king of all cryptocurrencies demonstrated a long-expected growth up to $16,900 which is the first significant result after a week of stagnation. It was also a sign of recovery after a devastating 30% drop in the mid-December when bitcoin reached the rate of less than $12,000 per unit.
Meanwhile, Bogart is not the only one, who predicts bright future for bitcoin this year. In particular, a hedge fund investor Mike Novogratz, Fundstrat’s Tom Lee, and financial analyst Max Keiser have claimed that the value of one bitcoin very probably will overcome the $40,000 margin by late 2018.